Popular neighbourhoods for property rentals in Abu Dhabi

Due to its convenient location, its long list of attractions and amenities, as well as extensive opportunities for employment and business development, Abu Dhabi enjoys considerable popularity among real estate tenants. Housing in the capital is a bit more expensive compared to Dubai, but the average cost of utilities is actually lower here.

Features of the Rental Procedure in Abu Dhabi

The procedure for renting a property in the Emirates has a number of features that are important to take into account:

In addition to rental payments, you need to make a deposit. In most cases, this is 5% of the total annual rental cost. The amount of the deposit will be refunded after the expiration of the contract.
The tenant must connect all utilities, create a personal account and pay all applicable fees to the Abu Dhabi Distribution Company (ADDC).
Conclusion of a long-term rental agreement in the emirate can be for a period of 1 year or more. In this case, payments must be made in advance by 1 cheque or quarterly (2-4 checks with fixed dates).

NBD! In general, UAE tenants spend about 30–40% of their total income on housing.

The Best Areas to Rent Property in Abu Dhabi

In Abu Dhabi you can find real estate of any class and value. To live comfortably and rent an apartment in the emirate, your monthly income should be at least AED 5K (USD 1.5K). Below we will take a look at the options for the best areas to rent a property in Abu Dhabi, depending on the level of income.

Income of AED 5–9K (USD 1.5–2.5K) per month

Al Mushrif is one of the most popular areas in Abu Dhabi with apartments in this budget segment. Renting a local property will cost you AED 24–38K (USD 7–10K) per year. This area has a well-developed infrastructure and is suitable for both families and for business professionals. It also provides sports fields and running tracks for those with an active lifestyle.

NBD! For a long time this area was inhabited exclusively by locals, only 10 years ago did it become available to expats.

There are mostly studios and 1–4 bedroom apartments in the area, but there are also larger 3–8 bedroom residences and villas in a number of communities. Al Mushrif has low-rise buildings in Mediterranean and traditional Arabic style.

Income of AED 9–13K (USD 2.5–3.5K) per month

Tenants with higher income often choose studios and apartments with 1 or 2 bedrooms for AED 35–58K (USD 10–16K) per year. Among the long-time favourites are the areas of Al Reem Island and Mussafah.

If Al Reem Island is an ambitious new project, then Mussafah, on the contrary, was created back in the 70’s and is the industrial zone of the emirate. After the construction of the Mussafah Bridge the area gradually began to expand. Since 2000 it has become a thriving economic zone with well-appointed residential communities, has its own port, and creates ample international business opportunities. Annual rental prices for 1-bedroom apartments in this area start from AED 40K (USD 11K).

Al Reem Island is a natural island located about 1,968 ft off the northeastern coast of Abu Dhabi. This is a developed residential area with its own retail stores, parks, restaurants, schools and hospitals. It has the country's first digital shopping center called Reem Mall with 450 stores, 100 restaurants, a cinema and an indoor snow park. The island is connected to the mainland of the emirate by 2 bridges, with another one currently under construction. You can rent almost any property here, from small apartments and studios to luxury villas. The annual rental price of 1-bedroom apartments in the area starts from AED 45K (USD 12K).

NBD! The total cost of Al Reem Island development is estimated at AED 110M (USD 30M).

Income of AED 13–18K (USD 3.5–5K) per month

Often representatives of the middle class in the Emirates are wealthy families who prefer more spacious and comfortable homes. Those who have a monthly income of AED 10–18K (USD 3.5–5K) may consider renting apartments, townhouses and villas in 2–3 bedroom configurations with landscaped gardens.

Professionals who want to live closer to the city center often choose apartments in areas such as Hamdan Street or Al Reem Island. Families, on the other hand, prefer more secluded gated communities with a wide variety of on-site amenities. That being said, Al Reef, Al Samha and Mohamed Bin Zayed City are the most popular areas for townhouse and villa rentals.

The average rental cost for an apartment with 1 and 2 bedroom layouts on Hamdan Street or the Al Reem Island area is AED 32K (USD 9K) and AED 38–40K (USD 10–11K) per year, respectively.

An annual stay in a 1-bedroom apartment in Mohammed Bin Zayed City will cost you from AED 31K (USD 8K). Renting a larger residence with 2-bedroom layouts costs from AED 60K (USD 16K).

Income of AED 18–25K (USD 5–7K) per month

Expats with a minimum income of AED 18K (USD 5K) a month can afford to rent luxury properties in some of the most prestigious areas of Abu Dhabi, like Yas Island, Al Khalidiya or Corniche. These areas are located in close proximity to the center of the emirate and offer extensive recreational amenities, as well as easy access to business centers and offices of international companies. The average annual rental cost on Yas Island is AED 57K (USD 16K), in Al Khalidiya – AED 63K (USD 17K) and in Corniche – AED 85K (USD 23K).

Tenants of luxury villas often choose Mohamed Bin Zayed City and Khalifa City, which are cozy suburban areas with developed infrastructures and various amenities. They are designed as self-sufficient communities with their own schools, stores and entertainment centers. Thanks to the abundance of sports, playgrounds and green areas, such properties are well suited for families with children. The rental price of a villa in Mohammed Bin Zayed City is priced at a minimum of AED 110K (USD 30K) and in Khalifa City – from AED 130K (USD 35K) per year.

Income of Over AED 25K (USD 7K) per month

Expats with income of over AED 25K (USD 7K) can afford to rent almost any property, even in the most luxurious areas of Abu Dhabi. Often, highly paid professionals choose prestigious residences in Al Raha Beach, Corniche Road or Yas Island.

Corniche Road is the central area of Abu Dhabi and is constructed around numerous cafés and restaurants, entertainment venues and business centers. Local residential communities feature ultra-modern skyscrapers with studios and apartments, complemented with a variety of amenities. The average rental price for a 1-bedroom apartment in this area will cost you from AED 48K (USD 13K). More spacious properties in 2-bedroom configurations here will cost from AED 80K (USD 22K).

Yas Island is no less popular among wealthy expats, as this is one of the emirate's largest residential and tourist projects with integrated communities for recreation and entertainment. The area of the island is 2,500 hectares, of which 1,700 hectares is allocated for the development of entertainment infrastructure and residential facilities. A colossal number of attractions are concentrated here, including the UAE's first Ferrari World Abu Dhabi theme park, the Formula 1 circuit; Yas Marina Circuit, Yas Waterworld with 40 unique water rides, the Warner Bros. World Abu Dhabi theme park and much more.

The island has both luxury townhouses and villas, in addition to apartments. The cost of a year's stay in a 2-bedroom villa on Yas Island is priced at a minimum of AED 180K (USD 49K). A 2-bedroom townhouse in this area will cost you from AED 170K (USD 46K), whereas apartments with 2 bedroom layouts are priced at a minimum of AED 65K (USD 18K) per year.

How Can We Help?

Metropolitan Capital Real Estate is a recognized leader in the UAE real estate market. We provide a wide range of real estate services including a selection of investment, commercial and residential real estate for purchase or to rent, as well as full documentary and legal support. Our experienced agents will help you to find the most suitable residential property in Abu Dhabi that fully meets your goals and budget. The company will also provide full assistance if you need a residency visa or a mortgage loan. At the same time, investors interested in passive income opportunities can take advantage of our property management service as well.

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